An alternative technique, cost-effectiveness analysis, is proposed as a more appropriate way of evaluating the Open University. A rudimentary application of the technique to the cost structure of OU indicates that it could result in a substantial reduction in OU's costs. (Author/LBH)

An analysis of developments at the Open University since 1973 indicates that there has been little reduction in average cost in real terms and that no improvement is likely on known developments to 1979. Reasons for this are explored, and suggestions for improving the situation are offered. (Editor/LBH)